Retirement - Live Life or Penny Pinch

Linton

downshifter98 said:

My Dad is 86; Still lives independently and his health is relatively good. He lives on very little and, despite receiving pension credit, is still a saver! TV, books, newspapers, jigsaws, a whisky or 2 most evenings keep him happy plus he still socialises (makes good use of his bus pass) with friends (that have survived this far) and family, including 3 Great Grandkids. He lives well on the necessities but doesn't scrimp on simple pleasures. His only real indulgence is spending on his family as there is no point in him adding to fairly meagre savings.

You just don't consume nearly so much stuff at 80 plus; spend your retirement money while you can and while you are minded to.   

On the other hand you dont want to put yourself in the position at any time of life, but particularly extreme old age where spending very little is imposed on you rather than a choice. Perhaps when Dad is a little frailer he would benefit from a cleaner, gardener, or some-one to help him get up in the morning.

older_and_no_wiser

downshifter98 said:

My Dad is 86; Still lives independently and his health is relatively good. He lives on very little and, despite receiving pension credit, is still a saver! TV, books, newspapers, jigsaws, a whisky or 2 most evenings keep him happy plus he still socialises (makes good use of his bus pass) with friends (that have survived this far) and family, including 3 Great Grandkids. He lives well on the necessities but doesn't scrimp on simple pleasures. His only real indulgence is spending on his family as there is no point in him adding to fairly meagre savings.

You just don't consume nearly so much stuff at 80 plus; spend your retirement money while you can and while you are minded to.   

My dad is similar; 88 and on pension credit. He lives in his own and I am virtually next door and keep an eye on him, helping out with making meals and keeping him company. He saves quite a bit and had very little expense other than a couple of UK holidays a year (with me). He still drives but only around the local area. His motor insurance and car expenses are his biggest expense but he loves his car and the independence it gives him.

Kim1965

Likewise my mum is 86, drives still. Her income is a fraction above being entitled to pension credit. She recieves basic state pension, about £300 pm spouse pension but gets some help with c/tax and rent.
 I should be way better prepped for retirement than her. However
 I wouldnt say she lives a paupers life and certainly does not skimp on heating and eating. These accounts seem greatly at odds with média reports about state pensioners and poverty .However there is  no gaurentee the benefit/pension levels will be the same going forward. 
 

Nurse2047

My grandad died earlier this year he was in his 90s. He watched every penny all his life, checked every receipt and bought cheap food. I never knew them to enjoy their money although he had I believe 100k in a current account earning little interest as he only ever had one bank account. I wish to live my life to what I perceive full in which is sharing any wealth I have which is modest with my children and enjoy treating them when I can. 

If you have enough to enjoy the freedom life gives you and are truly content with where you are in life that’s all I hope for. 

Moonwolf

I am 56 and hope to retire before I am sixty.  By next April I will have about £20K in DB pensions (multiple pensions that kick in at 60 and 65) and I already qualify for the full state pension from 67.  That is easily enough to live unless and until I need a home, at which point I'll sell the house.  I also have a DC scheme which is just under £300k.  That will form a bridge to my pensions and then there should be some left from 67.

My spreadsheet has me taking an additional £10K a year, mainly for travel, using flexible drawdown which would run out between 80 and 90 depending on the difference between investment growth and my personal inflation rate.*  In reality I expect to review my spending each year and either adjust my spending or drawdown as necessary, and I expect to spend less and particularly travel less as I get older; by the time I'm 85, £30k of state and DB pension should be enough.  It is certainly true that all my relatives over 80 spend less than they did at 60-70.  For the record, I am 6'3" and I've already had two different cancers.

*My spreadsheets use a flat plan (i.e. assume pension growth, CPI and personal inflation remain roughly similar), I can adjust my assumptions on growth but currently I use -1% for cash and +2.5% for investments. i.e. cash will shrink by 1% compared to inflation and investments will grow by 2.5% over inflation.  These figures are currently wrong, but have been conservative over the last 10 years.

With just a DC pension, personally I'd be tempted to work it roughly the same.  Set half (or whatever looks right) for a guaranteed income, perhaps even an annuity and the rest, allowing it to run out around 85.

[Deleted User]

 Eek!!!!!!!! I am a 6 3 tall slim attractive male of 64 and presently in good health. According to some posters on this thread I am doomed! 😳

Silverbullet036

[Deleted User] said:

 Eek!!!!!!!! I am a 6 3 tall slim attractive male of 64 and presently in good health.

Dating app profile ??

[Deleted User]

Silverbullet036 said:

[Deleted User] said:

 Eek!!!!!!!! I am a 6 3 tall slim attractive male of 64 and presently in good health.

Dating app profile ??

Don’t need one as have plentiful supply 😏

Albermarle

Kim1965 said:

Likewise my mum is 86, drives still. Her income is a fraction above being entitled to pension credit. She recieves basic state pension, about £300 pm spouse pension but gets some help with c/tax and rent.
 I should be way better prepped for retirement than her. However
 I wouldnt say she lives a paupers life and certainly does not skimp on heating and eating. These accounts seem greatly at odds with média reports about state pensioners and poverty .However there is  no gaurentee the benefit/pension levels will be the same going forward. 
 

The media like to blow things out of proportion and focus on a few cases, and give an impression that all pensioners are in the same boat, when they are clearly not. Apparently some pensioners living in modest well insulated accommodation, are paying no more for energy than before, due to the £400 discount we all get, and the increased winter fuel discount.

Miiade

I read meters for a living. I visit all postcodes and cover all income brackets. It’s a real cross section of pensioners.

Is it possible that all tall elderly men don’t answer the door or are out when I visit, then yes of course it is. Just how realistic this is of happening I am not convinced.